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Karmazin Clarifies XM/Sirius Pricing

By Amy Gilroy -- TWICE, 3/7/2007

New York — Sirius CEO Mel Karmazin said pricing for merged XM/Sirius programming could exceed $12.95 if the consumer orders content from more than one service.

Sirius confirmed that Karmazin told the New York Times, “Subscribers wanting to keep their existing service would not face a price increase, and listeners who wanted the best of both services would pay less than the combined rate of $25.90.”

Published reports said past statements by Karmazin claiming a merged XM/Sirius company would not raise prices were confusing because it was not known if this referred to maintaining a cost of $12.95 (for one service) or of $25.90 (for two services).

Karmazin is expected to testify on the merger before that House Energy and Commerce Committee’s Subcommittee on Telecommunications and the Internet on March 7.

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